Moody’s rates Intelsat Jackson notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to Intelsat Jackson Holdings SA’s new $2 billion senior unsecured notes.

“Since the proceeds will refinance a portion of the company's existing $2.2 billion senior unsecured notes due October 2020, pay call premia and related fees and expenses, the transaction is credit metric neutral and has no impact on Intelsat (Luxembourg) SA ratings,” the agency said in a news release.

The new notes are rated at the same Caa2 level as the notes they refinance, Moody’s noted.

The agency said the company’s credit profile is based primarily on an assessment that the company's capital structure is not sustainable, with elevated leverage and the potential of excess supply and sustained cash flow pressure stemming from evolving industry fundamentals combining to increase the potential of debt restructurings, that may be assessed as constituting distressed exchanges and limited defaults.

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